about total sales?

[bucklr]

Hi guys,
If a question says bad debts are 2% of total sales, does "total sales"  include gst. In the solutions they did but i have a feeling that it may not be true.

If someone could confirm that would be great,
thanks.

[abcdqd]

budgeted bad debts are calculated from the debtors control figure, which includes the GST on sale.
however i think budgeted sales returns or prepaid sales(if asked to calculate as a percentage of "total sales") are calculated exclusive of GST.

[BoredSatan]

GST is new to the study design and so whether the companies have been bothered to fix up their answers (because a lot of companies are just recycling exams and putting them in the new format) would determine whether they have included GST into the 'total sales' calculation.

You shouldnt have to include GST when it says 'total sales' because everyone knows that 'Sales' is exclusive of GST

[bucklr]

thanks boredsaint, yeah many companies have rushed through fixing the gst in budgeting

[BoredSatan]

thanks boredsaint, yeah many companies have rushed through fixing the gst in budgeting

yeah and this is really frustrating.

I'm currently doing the answers to PES and I actually can't do the budgets cause they havent taken into account the GST, resulting in decimal answers..